Is Dollar Collapse Inevitable ??

Data suggests that dollar is in grave danger, And central banker around the global are either lowering the interest to near zero levels or lower which we have not seen for the entire century.

Central bankers are saving dollar in the expense of rest of the currencies around the globe. Dollar will not survive, And is under threat with any further QE

Obama survived the first term with the phantom money printing with all QE's, And if he does in the second term then the collapse of dollar is written on the wall.We are already witnessing the current market situation

Currency Wars leads --------->>>>Trade wars leads---->>> Real Ground Wars.

Enjoy
Happy Trading

SILVER DE TOUR......

Silver along with gold has been bullish lately, And broke the medium term down turn on current price action drawn in blue circle.Silver is an inflationary hedge, And has been testing the longer term trend channel going back to 2008 when lehman brother bankrupted, And JP Morgan took Bear Sterns short position to make things look like bleak in white metal.

Anyway we were about to a test back to the downsloping channel on this around $28 area, And after that this would challenge all time high either Q4 2012 or Q1 2013 Once it gets pass all time highs then it will flex it muscle which can blow everyone out of thier seats.......thats the kinda of silver price action will be.My target in silver will be $70/0z before end of 2013 which is drawn in red circle Here's the longer term picture of silver.

Currency Market Updates

USD INR currency Pair

Indian Rupee has shown weakness during this entire year (previous post) which was quite normal bcoz of the RBI buying gold instead of the dollar swaps for the trade deficits (i.e exports,imports) in 2009.Here, we have the data for the USDINR pairs which  hit the initial upper price band around 57, And trying to consolidate in near future but this consolidation is showing some strength in the rupee which is good for import, And this is building a lower channel trend here which has immediate resistance around 56, And the downside would be around 52 which will be due sometime in Q4 of this year.Once this consolidation is finished this will gain the momentum to target to all time high again, And if that's breached then we will have target of 66, then over new normal on Indian rupee will be around 55.

 EUR USD Currency Pair-

This pair is showing more weakness when considereded to USD, And that in turn does not suggests that USD is strong.All the traders are trying to do is jumping from EUR to USD boat, And thats a safe heaven play but once the USD chicken come to roost then it will sink like a titanic which will not only effect the US but bring all the rest of FIAT CURRENCIES along with it.

EUR is the main concern here, the deep pocket players are trying to short this pig as there is no tomorrow for the EURO Zone as the Open Interest is rising pretty quickly.EUR is going to decide the equities markets as euro implodes so does the rest of the globex equities goes as dollar strengthens but this will be a  temporary deflationary forces on the credit markets but when you look closely in the real natural resources where there is shortage of supply side economies which will eventually explode to higher side espl on soft and hard commodities.Take a look at this chart

 

State Bank Of India

There was alot talk about the SBI results today but there is noway there will be bullish on this stock.Okay let take a look at the chart in longer term.State bank is in bearing trend right from may 2011when it pierced my moving average cloud, And after that you will notice it kisses the underneath the cloud which is bearish going forward.

Next support for SBI is 1800-1600 area
Immediate Resistance 2150-2200

Good Luck
Happy Trading

 

Nifty F&O Swing Trading Idea

New Home Address

My New Home address with all the contact(s) are embedded with in the photo.

Guyz if you are within the city let me know.

 

New Life Time High(s)

Russel 2000 Life Time High

After little data mining for the past 20-25 years chart i could able to find out few stocks that are targeting new life time high but once it breaks past that we will have the explosive moves that will target for the entire move.

 

 These are the stocks for the longer term where the price can explode even the severe market correction as well.
  

Good Luck
Happy Trading.

Precious Metal Updates :Gold And Silver

Precious metals are showing some signs of life back after having  consolidation in dollar term right after the may day fall, And this is been orchastered by the bullion banks and central bank cartel.These markets are capped so that big hedgies does not enter into the tiny bullion markets but when you look at the price action lately this is been spring coiled and ready to rebound in 2013.

Short Term Chart:

Short term pic suggest that the gold market is in symmetric triangle for the past few weeks and it broke to the upper side of the triangle and it is successfully testing the triangle again but remember the apex is time anlaysis to the enter move, And it may test based on the fed move again.Once it takes $1640-$1660 level it can easily cruise towards to $1700 levels from there it can again target the all time highs.

Note: Normally I don't like posting the short range picture as it will have huge impact on longer term

Gold Longer Term Chart

Gold longer term chart shows the open interest to price does not shows a immediate rise in the price action but will eventually gain the momentum in this once the market gets imploded in sept-nov so the fed action will pump this markets with new easing of money, And we will the price discovery in gold taking off the new highs in coming weeks and months.Now lets have look at the chart, gold is making a rounding bottom formation which is more bullish the more the consolidation the greater the force it will have .

Silver longer term Chart:

This looks quite similar to that of the gold but these markets are more manipulative then any other markets after data mining.But once the economy implodes then this will take 1:16 ratio of the gold as this is industrial as well as the monetary metal.This will rocket into stratosphere.Anyway time will tell as we enter into those double digit inflationary environment

There are few stories lately on the precious metals line:

Central Banks are controlling not to enter money in these sectors.

http://www.mineweb.com/mineweb/view/mineweb/en/page72068?oid=156649&sn=Detail&pid=102055 

 When the markets capped then central banks around the world are slowly  accumulating in their portfolio.China holding large treasury bonds and now they are going for gold holding.

http://www.chinadaily.com.cn/photo/2012-08/06/content_15648058.htm

Sensex and Nifty Trading Ideas

Most of the Globex had massive rally in the face of downgrades in the europe, And this is normal in the markets as the hedges wants to have negative sentiments so that they can load the futures in the face of bad news as their hedge.

Any here is the sensex chart:




Shorter Term:

Resistance 1: 17100
Resistance 2 : 17300

Put options can be loaded around those areas, And sell signal on the index would be around those 2 buffer values.

Support 1 : 15300

Once breaking that area will be massive down side in the markets along with the lower trending channel.Next support area is 13800

Support 2 : 13800

Previous Post
http://gamatraders.blogspot.com/2011/11/sensex-technicials.html


Nifty:

Resistance 1 : 5080
Resistance 2 : 5100

Support 1 : 4560

Nifty Chart shows signs of exhaustion as its heading for near term peak.Lets take look at the chart :

Dollar Vs Ruppee Analysis

Rupee Dollar currency exchange in the short term had huge a rally and now its taking beating falling all the way from 53 to 50.So what are implication in near future:

1.It broke the upper trending channel which suggests that after having a massive rally all the way from 44 to 53 it needs a consolidation phase either sideways or corrective.

2.Short term it broke my weekly moving average cloud strategy suggests that there is further weakness in the rupee, And this price action to current level suggest that there is little to strong support levels around 49 area before it can turn around.

3. If the support level 49 holds and if it can build a base levels around that levels we can still achieve 58 levels but this time not with the trending channel but underneath the belly area as it resistance all the way to our target 58

Okay lets have the short term chart of USDINR





Long term chart moving average cloud suggest that there is strong support around 46-47 area if all the above short term analysis is void. But the chance are very slim as its tie to the general equities as well the news flowing about the dollar carnage.

Here are the list of countries (mostly Asian countries) trying to trash the dollar, Click for the articles on them

1. China Japan
2 China Russia
3 Russia Iran
4. India Iran
5. India Japan

Oka lets take look at the longer term view

Happy New Year 2012